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What is IRS Letter 6489?

 

IRS Letter 6489 is issued when the IRS identifies discrepancies in Schedule K-1 reporting from partnerships, S-Corps, or trusts. It means your reported income or deductions don’t match what the entity filed.

White envelope stamped in red with “IRS Letter 6489 – Important: IRS Notice Enclosed.” Represents an official IRS notification about payment or credit reconciliation.

What is IRS Letter 6489?

White envelope stamped in red with “IRS Letter 6489 – Important: IRS Notice Enclosed.” Represents an official IRS notification about payment or credit reconciliation.

IRS Letter 6489 is issued when the IRS identifies discrepancies in Schedule K-1 reporting from partnerships, S-Corps, or trusts. It means your reported income or deductions don’t match what the entity filed.

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Why did I get IRS Letter 6489?

If you're invested in a crypto hedge fund, DAO, or DeFi LP structure that issues a K-1, this letter could flag mismatched data, especially if you omitted it or filed it late.

What to do next:

Two overlapping K-1 forms with a teal magnifying glass between them, representing comparison of the original K-1 with filed tax data.

1: Obtain a copy of the original K-1 and compare it to your tax filing

 

Open teal folder containing small sheets showing currency symbols and graphs, representing organized preparation of supporting documentation for foreign tax credit claims.

2: Amend your return if needed to reflect the correct amounts

ax form with teal pencil and edit marks, representing making corrections or amendments to an IRS return.

3: Respond within the stated timeframe to avoid penalties

When to Seek Professional Help

CryptoTaxAudit specializes in reconciling K-1 forms tied to crypto funds, DAOs, and structured investments, helping you avoid audits and penalties.

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Additional Resources

Voluntary compliance letters